New Delhi: The Ministry of Mines has notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026, providing a framework for inclusion of contiguous areas and associated minerals in mining leases.
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The ministry said the amendments “provide detailed mechanism for inclusion of contiguous area in the mining lease and composite licence of deep-seated minerals and inclusion of associated minerals in the mining leases of major as well as minor minerals.”
The changes follow amendments to the Mines and Minerals (Development and Regulation) Act, 1957 through the MMDR Amendment Act, 2025, effective September 1, 2025.
The ministry said the reforms are aimed “to increase exploration and production of critical minerals required for the country,” adding that they “give impetus to the mining sector to increase supply of minerals for the industries, leading to strengthening Atmanirbhar Bharat.”
The amended rules introduce time-bound provisions for extending lease areas to include contiguous zones. For mining leases, the additional contiguous area is capped at 10 percent, while for composite licences it is capped at 30 percent.
The ministry said allowing such inclusion “will promote optimal mining of deep-seated minerals, which are locked up in contiguous areas and may not be economically viable to be extracted under a separate lease or licence.”
The rules also lay down the process for inclusion of additional minerals, including minor minerals, within an existing lease.
State governments are mandated to approve such applications within 30 days. The ministry added that no additional payment will be required for inclusion of critical, strategic or deep-seated minerals listed in the Seventh Schedule to incentivise their production.
The amendment mandates that future leases for minor minerals (excluding sand) will be granted only after exploration up to the G3 level. It also removes limits on sale of minerals from captive mines, allowing miners to sell surplus output after meeting end-use plant requirements.
The ministry said this “will increase mineral availability in the market, including for the MSMEs.”
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The ministry said the simplified regime “will not only promote ease of doing business in the sector but will enable increase in production of critical, strategic and deep-seated minerals.”
It added that states are expected to benefit from higher production and additional payments, noting that the rules were framed after consultations with stakeholders including state governments and industry bodies.